| |
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|
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
35. Related party transactions
The Company had the following transactions with related entities during the year under review:
(a) Mobitel (Pvt) Limited
Sale of goods and services:
| |
Group |
| |
2008 |
2007 |
| Provision of E1 links |
496 |
332 |
| Interconnection charges |
168 |
234 |
| VOIP Platform |
8 |
9 |
| |
672 |
575 |
| |
|
|
| Purchase of goods and services: |
|
|
| Call charges relating to cellular phones purchased by the Company employees |
51 |
44 |
| Interconnection charges |
253 |
167 |
| Antenna tower space |
223 |
159 |
| |
527 |
370 |
| Preference dividend received |
349 |
- |
| |
|
|
Number of new GSM connections granted (special packages with no monthly rental) in 2008 is 582 (2007 - 1,754).
The Company has provided the following guarantees on behalf of Mobitel (Pvt) Limited:
(i) Loans amounting to Rs. 8,710 million (2007 - Rs. 10,225 million) and USD 48.1 million
(2007 - USD 4.8 million) for GSM rollout stage 1, 3 and 4.
(ii) A commitment guarantee amounting to Rs. 250 million (2007 - Rs. 250 million) issued by banks in favour of TRC for the purpose of 3G rollout.
(b) NTT Communications Corporation
As per the shareholders’ agreement with NTT Com, the following charges have been borne by the Company. The shareholder agreement expired on 1 April 2008 (the date of sale of shares held by NTT) and was not renewed.
| |
Company |
| |
2008 |
2007 |
| Purchase of goods and services: |
|
|
| Fees for secondment of personnel from NTT Com |
11 |
43 |
| Expenditure for personnel from NTT Com |
4 |
11 |
| |
15 |
54 |
| |
|
|
(c) SLT Hong Kong Limited
| |
Company |
| |
2008 |
2007 |
| Sale of goods and services: |
|
|
| Leased circuits |
40 |
4 |
| |
|
|
| Purchase of goods and services: |
|
|
| Leased circuits |
62 |
5 |
(d) Sri Lanka Telecom (Services) Limited
| |
Company |
| |
2008 |
2007 |
| Purchase of goods and services: |
|
|
| Supply of services to SLT |
1 |
- |
| |
|
|
(e) Fees for secondment of personnel and services provided from/by SLT PLC
| |
Company |
| |
2008 |
2007 |
| SLT Publications (Pvt) Limited |
8 |
- |
| SLT Manpower Solutions (Pvt) Limited |
4 |
- |
| SLT VisionCom (Pvt) Limited |
13 |
- |
| Sky Network (Pvt) Limited |
6 |
- |
| |
31 |
- |
| |
|
|
(f) Maxis Communications Berhad and its subsidiaries
| |
Company |
| |
2008 |
2007 |
| Sale of goods and services: |
|
|
| Sale of SEA-ME-WE 3 Cables capacity |
61 |
- |
| International settlements (in-payments) |
144 |
- |
| |
205 |
- |
| Purchase of goods and services: |
|
|
| International settlements (out-payments) |
14 |
- |
| |
|
|
(g) Outstanding balances arising from sale/purchase of services
| |
Company |
| |
2008 |
2007 |
| Receivable from subsidiaries: |
|
|
| Mobitel (Pvt) Limited |
2,255 |
1,646 |
| SLT Hong Kong Limited |
2 |
4 |
| SLT Publications (Pvt) Limited |
19 |
- |
| SLT Manpower Solutions (Pvt) Limited |
4 |
- |
| SLT VisionCom (Pvt) Limited |
13 |
- |
| Sky Network (Pvt) Limited |
6 |
- |
| |
2,299 |
1,650 |
| |
|
|
| Payable to subsidiaries: |
|
|
| Mobitel (Pvt) Limited |
777 |
350 |
| Sri Lanka Telecom (Services) Limited |
- |
2 |
| SLT Hong Kong Limited |
2 |
5 |
| SLT Manpower Solutions (Pvt) Limited |
50 |
- |
| |
829 |
357 |
| |
|
|
Receivable from related companies
| |
Group/Company |
| |
2008 |
2007 |
| Maxis Communications Berhad and its subsidiaries |
139 |
- |
(h) Key management compensation
| |
Group |
Company |
| |
2008 |
2007 |
2008 |
2007 |
| Salaries and other benefits |
91 |
70 |
54 |
52 |
| |
|
|
|
|
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions. A related party transaction takes place with a transfer of resources or obligations between related parties, regardless of whether a price is charged.
All transactions during the year and balances as at the balance sheet date between the following companies have been eliminated in preparing the Consolidated financial statements.
Mobitel (Pvt) Limited
Sri Lanka Telecom (Services) Limited
SLT Hong Kong Limited
SLT Publications (Pvt) Limited
SLT Manpower Solutions (Pvt) Limited
SLT VisionCom (Pvt) Limited
Sky Network (Pvt) Limited
Related party transactions disclosed above should be read in conjunction with Notes 17 and 36 to the financial statements.
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